Having been working for various agencies around the south of England i have recently been advised to set up my own limited company from other drivers and the agencies themselves, so i can carry on enjoying certain tax benefits which i have had working through umbrella companies such as Nova etc. However having been to see an accountant today i have been advised from doing so, telling me that it’s really not worth it in the long run.
Can anyone tell me of their experiance’s with their own ltd company and let me know wheather it really is worth it. As am now in two mind’s to set one up or not. Thank you .
Hi onedrop, WELCOME. 
I can’t help with your question, but I welcome you just the same.
have a good go with the search in between " chat" and “memberlist” its brings up 7237 results.
Hi Onedrop
I work as an IT contractor in Yorkshire and drive inbetween contracts all done through a Ltd Company via agencies.
A limited company can be better if the costs work out, the extra running costs of a limited company have to be less than umbrella company costs. In my case the running costs are far less and there are more deductable expenses so the eventual take home pay is greater.
If you are prepaired to do the simple book work yourself then the extra costs will be minimal.
If I was cynical, which of course I’m not, I suspect the accountant realises it may not benefit them in the long run, if you aren’t going to be “vattable” then they wont make much in the way of fees from you!
Did the accountant explain why it is not a good idea ?
If you can get enough work what problem could there be ■■
strongbow:
If I was cynical, which of course I’m not, I suspect the accountant realises it may not benefit them in the long run, if you aren’t going to be “vattable” then they wont make much in the way of fees from you!
Oooh you cynic. Accountants don’t think like that, surely!!
Onedrop, have a look here -
If you’ve already been working through Nova you’ll be aware of the differences between employed and Ltd.
Get registered for VAT and then you just submit invoices for the work you’ve done to the agency(s) - including VAT. If you register on the Flat Rate Scheme you then charge VAT at 17.5% and then repay at 9% (8% in the first year).
The best questions already been asked - Did the accountant explain why it is not a good idea ?
It’s certainly been good for me. 
Stan
The accountant kept stressing the importance of the IR35 rule which he think’s i’ll come under. Am not sure weather or not i will as i work for different clients through different agencies on a regular basis i also might work for 4-5 weeks and then take a week or so off. They say as long as i can get around this rule i should be alright.
IIRC you can work for one client for up to 6 months without falling outside the IR35 rule. As you work multi-agency you should be fine.
Stan
I have run a limited company for the last 25 years here are the pro’s and con’s (the stuff accountants don’t tell you)
Good tax advantages by paying yourself in dividends saving you a fortune in PAYE
If you go bust you are not personally liable and if you find a good accountant with the right connections you can just restart with a new company and not lose a penny.
Becoming a limited company puts you right in the firing line for the inland revenue, and if you don’t keep your accounts in order and record everything they will jump on you from a great height throw their weight about (they are worse than VOSA they ARE God)and hit you with a big bill, make sure you take out investigation insurance as an investigation will cost you £10000 upwards.
You have to file annual accounts with companies house, be careful with this, show too much profit and you end up with a big corporation tax bill 2% on your net profit, show too little and you will find it difficult to get credit, unless like me you have property but if you go bust you will lose it. I have found the best way to go is start off with healthy accounts, get all the suppliers on board then start shuffling your assetts so if things go pear shaped the liquidator can’t get your stock.
Hope this helps !